Egyptian President Abdelfattah al-Sisi has indicated that Cairo may reconsider its $8 billion agreement with the International Monetary Fund (IMF) due to growing regional challenges.
The deal, signed in March, requires Egypt to cut electricity and fuel subsidies, a measure that has become increasingly difficult amid recent economic pressures.
Al-Sisi’s remarks come as the region faces escalating tensions, particularly attacks in the Red Sea by Yemeni Houthi forces.
These disruptions have impacted traffic through the Suez Canal, a critical source of revenue for Egypt’s economy.
President Sisi called on the IMF and other financial institutions to consider the impact of these challenges on Egypt’s economic stability.
“The programme we have agreed upon with the fund – and that is an important matter that I am telling the government and myself, if this challenge will hurt public opinion, that people cannot bear it, we must re-evaluate our situation,” al-Sisi stated.
The government’s commitment to the IMF plan has already led to multiple price hikes this year.
On Friday, Egypt raised the prices of various petroleum products for the third time in 2024, with gasoline and diesel prices increasing by 11% to 17%, according to the local newspaper Youm7.
In addition, a significant 300% rise in the cost of subsidized bread, which took effect on June 1, contributed to a spike in inflation.
The increase drove food and beverage prices up by 30.8% year-on-year and 3% month-on-month, deepening concerns over the nation’s economic future.
As Cairo grapples with these internal and external pressures, al-Sisi’s comments suggest a willingness to revisit the IMF agreement if the economic strain proves too great for the Egyptian public to endure.
